USA HISTORY

Detailed explanation-1: -The stock market lost almost 90% of its value between 1929 and 1933. Around 11, 000 banks failed during the Great Depression. Between 1929 and 1932, federal revenue dropped by 50% and industrial production fell 52% In 1933, unemployment was 25% and more than 40% of mortgages were in default.

Detailed explanation-2: -Many of the small banks had lent large portions of their assets for stock market speculation and were virtually put out of business overnight when the market crashed. In all, 9, 000 banks failed–taking with them $7 billion in depositors’ assets.

Detailed explanation-3: -Although only a small percentage of Americans had invested in the stock market, the crash affected everyone. Banks lost millions and, in response, foreclosed on business and personal loans, which in turn pressured customers to pay back their loans, whether or not they had the cash.

Detailed explanation-4: -The stock market ultimately lost $14 billion that day. The stock market crash crippled the American economy because not only had individual investors put their money into stocks, so did businesses. When the stock market crashed, businesses lost their money.